A deepening shortage of certified accountants in the United States has prompted a wave of U.S.-based accounting firms to expand their operations in India, tapping the country’s burgeoning pool of finance graduates to shore up staffing and service delivery. As seasoned professionals retire and enrollment in accounting programs stagnates, firms ranging from mid-tier players to the Big Four are ramping up hiring in Bengaluru, Hyderabad and Mumbai, betting that India can become a new global hub for accounting talent.

A Shrinking Workforce Meets Rising Demand

Recent data from the U.S. Bureau of Labor Statistics shows the number of people employed as accountants and auditors fell by roughly 10 percent between 2019 and 2024, even as overall job openings in the profession climbed. With nearly half of all U.S. CPAs over age 50 and few younger entrants to replace them, firms have struggled to meet client needs—from regulatory compliance and tax planning to financial reporting under evolving standards. The American Institute of CPAs has acknowledged a “talent pipeline crisis,” commissioning studies that warn of delayed filings and stretched audit teams unless new sources of qualified staff emerge.

Mirroring the outsourcing revolution of the 1990s tech industry, U.S. accounting firms are now establishing or enlarging Global Capability Centres (GCCs) in Indian cities. RSM US, for example, plans to more than double its Indian headcount to 5,000 by 2027, focusing on audit support, tax research and data analytics roles. Similarly, Sikich—a mid-sized advisory and tax firm backed by Bain Capital—has grown its Bangalore office to 200 professionals, with plans to double that by next year. “India offers both the scale and the technical skill set we need,” says Bobby Achettu, Sikich’s principal leading its India operations. “But it’s also about transforming service delivery through automation and AI, blending human expertise with advanced tools.”

Mid-Tier Firms Tap Direct Campus Recruiting

Beyond the largest firms, a raft of midsize and regional practices have begun recruiting directly from Indian universities. Apax Partners-backed CohnReznick and Moss Adams US have launched campus-outreach programs at institutions such as Christ University in Bengaluru and the Symbiosis Institute of Business Management in Pune, even sponsoring students through U.S. CPA exams and U.S. visa interviews. “We’re not just filling seats; we’re investing in future leaders,” explains Balaji Iyer, managing partner of Moss Adams India. Early results show enrolments in specialized commerce and accounting degrees climbing by 20 to 30 percent over the past 18 months.

The “Big Four” accounting firms—Deloitte, EY, KPMG and PwC—already boast between 140,000 and 160,000 staff in India across their global delivery centers. These hubs handle everything from compliance testing and internal audit to forensic accounting and risk advisory for multinational clients. Over the past year, each has earmarked additional hiring to support U.S. engagements, with some deploying “follow-the-sun” models that allow American partners to hand off urgent work to Indian teams overnight.

Drivers of the India Shift

Several factors underpin this strategic pivot. First, cost-arbitrage remains significant: the total compensation for an entry-level accountant in India can be 60 to 70 percent lower than in the United States, allowing firms to allocate savings to training and technology. Second, India produces over 1.5 million business and commerce graduates annually, roughly half of whom specialize in accounting or finance, ensuring a steady talent pipeline. Third, the Indian government’s New Education Policy has expanded higher-education seats and encouraged industry-academia partnerships, making specialized courses—such as integrated B.Com (Accounting & Finance) programs—more accessible.

Despite the enthusiasm, firms are mindful of maintaining quality and compliance with U.S. standards. To that end, many have set up dedicated training academies in India to prepare recruits for the Uniform CPA Examination and to familiarize them with U.S. Generally Accepted Accounting Principles (GAAP) and the Public Company Accounting Oversight Board (PCAOB) rules. Some have also established on-site mentors—experienced CPAs who rotate through Indian offices—to oversee audits and advise on complex engagements.

Technological Synergy and Innovation

The talent crunch has coincided with rapid advances in accounting technology. Firms are integrating robotic process automation (RPA), machine learning and cloud-based analytics into their workflows to reduce manual tasks and improve accuracy. Indian teams, often with dual backgrounds in finance and information technology, have become instrumental in developing and maintaining these platforms. “Our India center isn’t just lower-cost labor; it’s a hub of innovation,” notes one audit partner at a national firm. “We’re designing AI-driven tools there that will redefine how we approach audit sampling and risk assessment.”

For U.S. clients—ranging from Fortune 500 corporates to fast-growing tech startups—the expanded India footprint translates into faster turnaround times and more competitive pricing. Many firms now offer 24/7 accounting support, enabling critical processes like quarter-end closing and regulatory filings to proceed without delay. Meanwhile, emerging industries such as renewable energy and digital payments are tapping into specialized Indian teams for advisory services on tax incentives, transfer pricing and cross-border structuring.

Challenges and Long-Term Outlook

While the India strategy addresses immediate staffing woes, firms acknowledge potential risks. Geopolitical tensions, data-privacy regulations and periodic visa policy shifts in the U.S. can disrupt flows of work and personnel. Cultural alignment and time-zone differences also require robust management practices to ensure seamless collaboration. Nevertheless, executives describe the India expansion as a “multi-decade play,” aimed at embedding resilience into their global delivery models.

The lure of overseas careers is reshaping student aspirations in India. Leading business schools report a surge in applications for accounting specializations, with some programs turning away two-thirds of hopeful candidates due to capacity constraints. Faculty at Christ University say their Bachelor of Commerce (International Finance) program received over 3,000 applications for just 120 seats this year. In response, universities are forging partnerships with U.S. firms to co-design curricula, offer internships and guarantee interview opportunities upon graduation.

Beyond the accounting sector, the expansion of global capability centers is fueling job creation in related fields. Demand for IT support, HR services, legal compliance teams and administrative staff has climbed sharply in cities like Bengaluru, Hyderabad and Gurugram. Local governments are competing to attract these centers by offering tax incentives, real estate support and streamlined regulatory approvals, viewing them as a new engine of economic growth comparable to the 1990s IT boom.

By 2030, industry projections suggest that India could supply upwards of 20 percent of the global demand for mid- and senior-level accounting professionals. As U.S. firms continue to navigate retirements, changing regulations and the evolving expectations of corporate clients, the partnership with India’s talent pool appears poised to become an enduring pillar of the profession. With training academies scaling up, technology synergies deepening and educational streams flourishing, the world of accounting may well be on the cusp of an “Indian outsourcing wave” that reshapes both industries and markets on either side of the globe.

(Adapted from EconomicTimes.com)

Categories: Economy & Finance, Geopolitics, HR & Organization, Strategy